NEW YORK, Jan 21, 2026 (BSS/AFP) - United Airlines offered a sunny outlook on travel demand Tuesday as it reported higher quarterly profits despite a hit from the US government shutdown.

The big US carrier scored fourth-quarter profits of $1 billion, up six percent from the year-ago period.

Revenues rose about five percent to $15.4 billion, a record.

The company's fourth quarter profit increase came in spite of a $250 million hit from the government shutdown.

In November, US air officials mandated a 10 percent reduction in flights at 40 high-traffic airports across the country.

Air traffic controllers were required to keep working throughout the stoppage even after they stopped being paid by the US government.

"Strong revenue momentum has continued into 2026," said United, which projected higher first-quarter profits than in the 2025 period.

While United's international planes saw an increase in customer occupancy related to capacity, the domestic percentage declined from the year-ago period.

Major US carriers trimmed some capacity in the first half of 2025 amid a glut of tickets for the domestic market, but airlines have described the market as being in better balance in recent months.

Shares of United jumped 4.0 percent in after-hours trading.